Currently, there is a need for attraction of foreign investments with the aim to implement over 200 projects in oil, petrochemical and chemical industries, woodworking, agriculture and food industry, conversion of defense complex and machinebuilding, as well as in some other industries with the estimated investment amount totalling over USD 2 bln.

According to the State Committee of the Republic of Tatarstan for Statistics, in 1995 the amount of investments attracted to the Republic constituted USD 160.6 mln. and Rbl 3,129.1 mln. In comparison with 1994, the amount of attracted investments increased by 9.2 times, while the portion of direct foreign investments aimed at raising of the authorised capital of companies with foreign share has constituted 40.1% of the total investments. The majority of investments came from European countries (59.39%) and American countries (38.98%).

In the 1st half of 1996 some USD 62.6 mln of foreign capital was contributed to the Republic's economy. The portion of direct investments (such as contributions to the authorised funds, credits received from the foreign associates of the enterprises) accounted for 3.8% (or USD 2.4 mln.) of the total investments. Other investments (mostly being the credits of international financial organisations) totalled 96.2% or USD 60.2 mln.

The structure of foreign investments has undergone critical changes resulting in the increase of the other investments' share in the total volume of foreign investments. Thus, in the 1st half of 1995 the portion of direct investments was 79% and other investments amounted to 21%, while in the 1st half of 1996 these figures have been 3.8% and 96.2%, respectively.

At present, foreign investors are more and more interested in science­intensive industries promoting economic development.

Thus, in the 1st half of 1996 the industry was the major objective of foreign investments totalled USD 60.5 mln (96.7%), of which 74.4% (USD 45 mln.) represented the investments in the machinebuilding and metalworking sectors, and 25.3% (USD 15.3 mln.) the investments in the fuel industry. Noteworthy are the foreign investments in the trading and public catering sectors amounted to USD 1.8 mln. (2.9%).

Regionally, Naberezhnye Chelny (72.2%) and Almetyevsk (24.5%) held the lead in relation to the amount of foreign investments. Only 3.3% of the investments received in the 1st half of this year falls on Kazan.

In January to June 1996 the more developed countries accounted for some 96.9% of the total investments, which can be seen from the following table:

The rouble component of investments is increasingly growing. In the 1st half of this year the overseas investments have totalled Rbl 3,124.8 mln., which is 59 times higher as compared with the 1st half of 1995. The rouble investments are 100% direct investing mostly aimed at trading and public catering (99.2% of the total rouble investments).

Rouble capital has been invested in the economy of the Republic by foreign investors only (Great Britain, Spain, Germany).

In 1996, the priorities for investments in Tatarstan are identified as follows:

• production and processing of agricultural produce;
• construction of socially important projects;
• development of telecommunication and transport, elaboration andintroduction of information technologies;
• production of consumer goods, medical equipment, instruments,medicines;
• production of construction materials for housebuilding;
• development of business infrastructures;
• import­superseded and export­oriented production.

The national Centre of Tatarstan for Investments Promotion is established in the Republic, which basic objectives include development and implementation of united investment policy, strategic co­ordination of governmental, financial and nonfinancial institutions with the aim to attract foreign investments and intensify the investment process as a whole.

In 1996, it is planned to attract some USD 1 bln. of foreign investments to the Tatarstan economy By the mid­1996 the credit agreements have been already signed in the amount of USD 700 mln. for implementation of specific projects. Currently, the active search of the partners and sales markets is under way.

The Republic of Tatarstan has signed the Frame Credit Agreement with Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS), Germany which allocates 5­year investment credits in the amount of USD 250 mln under the guarantees of Hermes insurance company and Tatarstan oil contracts. The credit will be used for implementation of certain conversion projects. The Republic has also received other German credits ­ DM 150 mln. for reconstruction of Buinsk Sugar Refinery and DM 100 mln for construction of Alekseevsky Diary Kombinat. Both credits are guaranteed by the oil contracts. Credits from France follow the same pattern: USD 30 mln are allocated for the airport reconstruction, USD 20 mln. ­ for establishing the production of sugar beet agricultural machinery, and USD 40 mln. ­ for construction of new sugar refinery.

The list of investment projects